Tiger Brands Limited · JSE:TBS
Tiger Brands — FY2004 Earnings Presentation
20 slides from Tiger Brands's earnings presentation, September 2004
Slide 1: Tiger Brands Ltd Investor Presentation
Tiger Brands Ltd Investor Presentation ~ Results for the year ended 30 September 2004 ~
Slide 2: Agenda
AGENDA 1. Key Features of 2004 N. Dennis 2. Financial Results N.P. Doyle 3. Business Overviews - Food M.H. Franklin - Healthcare M.C. Norris - Fishing R.V. Smither - International R.V. Smither 4. Towards 2010 N. Dennis 5. Questions
Slide 3: Key Features of 2004
Key Features of 2004 z Margins well managed within a low inflation environment. z Good performance from regulated healthcare within a complex legislative environment. z Poor performance from snacks & treats, fishing and associates. z Progress in continuous improvement programme.
Slide 4: Key Features of 2004…continued
Key Features of 2004…continued z Successful listing of Spar. z Repayment of all offshore debt. z Reduced dividend cover/limited share buy back.
Slide 5: Income Statement year ended 30 September 2004
Income Statement year ended 30 September 2004 (Rm's) % Change 2004 2003 Revenue 10 25,421 23,039 Continuing operations 5 13,188 12,587 The Spar Group Ltd 18 11,985 10,121 Discontinued operations 248 331 Operating income (before amortisation) 24 2,369 1,918 Continuing operations 23 1,950 1,589 The Sp
Slide 6: Income Statement excluding SPAR
Income Statement excluding SPAR year ended 30 September 2004 (Rm's) % Change 2004 2003 Revenue 6 14,295 13,464 Continuing operations 7 14,047 13,133 Discontinued operations 248 331 Operating income (before amortisation) 24 1,952 1,572 Continuing operations 23 1,950 1,589 Discontinued operations 2 (1
Slide 7: Segmental Analysis (Continuing Operations)
Segmental Analysis (Continuing Operations) Rm Operating Income % Operating Margin % Continuing Operations 2004 2003 Inc/(Dec) 2004 2003 FMCG 1,124 886 27 11.2 9.6 Domestic Food 860 667 29 9.7 8.1 Grains 513 391 31 11.3 8.3 - Milling and baking 339 259 31 9.8 6.9 - Other Grains 174 132 32 16.3 13.4 G
Slide 8: Cash Flow year ended 30 September 2004
Cash Flow year ended 30 September 2004 (Rm) 2004 Cash Operating profit 2,729 Net financing costs & dividends received (150) Working capital reduction 169 Cash generated from operations 2,748 Proceeds from shares issued 57 Tax paid (678) Capex (391) Acquisitions (254) Investments (180) Share buy back
Slide 9: Key Financial Ratios
Key Financial Ratios Sept Sept 2004 2003 Operating Margin % 9.3 8.3 Operating Margin excluding SPAR % 13.9 12.1 Interest cover - net (times) 11.2 8.9 Interest cover excluding SPAR (times) 8.9 6.6 Net debt/equity % 34.1 55.3 Working Capital per R1 of sales (cents) 12.5 13.4 Working Capital per R1 of
Slide 10: Food Overview: Grains
Food Overview GRAINS MAIZE z Intense Competitive Rivalry z Investment in Degermination project WHEAT z Import Parity Pricing z Strong Industrial Demand BAKING z Good Growth z Continued Focus on Innovation z Capacity Issues
Slide 11: Food Overview: Other Grains
Food Overview OTHER GRAINS RICE z Strong Growth z Exchange Rate benefits SORGHUM z Benefits from Cereals Upgrade BREAKFAST z Successful Innovation z Plant Upgrade
Slide 12: Food Overview: Perishables
Food Overview PERISHABLES VALUE ADDED MEAT PRODUCTS z Exchange Rate Benefits z Efficiency Gains z Focus on Innovation DAIRY z Negative Impact of Surplusses z Enhanced Level of Innovation
Slide 13: Food Overview: Out of Home and Exports
Food Overview OUT OF HOME z Loss of Industrial Business z Period of Investment EXPORTS z Margin Impact of strong Rand z Deciduous z Growth of Homecare Exports
Slide 14: Food Overview: Groceries, Snacks & Treats
Food Overview GROCERIES z Significant cost savings realised. z Significant volume growth/focus on value proposition and pricing points. z Improved level of innovation. z Successful “bolt on” acquisition of Carmel range. SNACKS & TREATS z Impact of competition from cheaper imported sugar candy produc
Slide 15: Healthcare Overview
Healthcare Overview Consumer FMCG z Impact of Single Exit Pricing on OTC and Personal Care z Strong top line growth, particularly in Babycare and Homecare z Successful integration of Robertsons z Significant innovations in Baby and Homecare Regulated Healthcare z Significant volume growth z Successf
Slide 16: Healthcare Overview: Hospital Products
Healthcare Overview Hospital Products z Innovation and further diversification z Improvement in margins z Impact of Single Exit Pricing on all medicines
Slide 17: Fishing Overview: Sea Harvest
Fishing Overview SEA HARVEST z Prevalence of small fish z Decline in catch rates z Rand Strength z Success of twin Trawling z New inshore vessel performing well
Slide 18: Fishing Overview: Oceana
Fishing Overview OCEANA z Pelagic fishing volumes up but cannery production yields lower z Canned fish sales volumes lower on domestic market z Exports affected by the strong rand z Cold storage division benefited from increased fruit export volumes. z Acquisition of Glenryck UK.
Slide 19: International
International z Lower level of contribution from C& T Malt. z Carozzi negatively impacted by the strength of the Peso. z The outlook for 2005 for both investments is more encouraging.
Slide 20: Towards 2010
TOWARDS 2010